Beware of 4 common white lies

1 in 5 clients under 35 lie on their insurance applications, says TD Insurance survey.

Brokers targeting Gen X and Y should be wary when doing business with these clients because they may omit facts when applying for insurance. In fact, one in five Canadians under 35 admits they have purposely lied or neglected to admit certain information when filling out insurance applications, according to a survey by TD Insurance.

“Our poll uncovered some really eye-opening information,” said Henry Blumenthal, vice president and chief underwriter at TD Insurance.

He added it’s important for clients to be honest about their needs and personal circumstances so that insurers can recommend the best policy for them. Also, clients that don’t tell all the facts could end up in sticky situations including denial of a claim, policy cancellation, or insurance fraud – a criminal offence.

Here are 4 common lies your P&C customers might tell you when filling out insurance applications.

1) In auto insurance, customers may try to hide previous losses or convictions.

2) For home insurance, clients may not reveal a recent or major renovation.

3) Ask clients if they operate a home daycare when they apply for home insurance, which is another common omission.

4) Also for home insurance, customers might neglect to tell you they rent out certain rooms or sections of their home.

The online survey included responses from 1,000 Canadians. To read previously reported findings from the TD Insurance survey, click here.

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